From pv magazine Germany
SMA Solar Technology said it will reduce its workforce by 300 positions in Germany and 50 abroad by 2026.
The German inverter maker plans to expand its restructuring and transformation program, which began in September 2024 with announced annual savings of €150 million ($175.14 million) to €200 million.
The company blamed a “persistently weak” market and intense price pressure in the residential and commercial sectors for the decision. Business for large-scale power plants, by contrast, is performing well.
SMA said it aims to put the home and business division “back on a clear path to success” and secure the company’s position through balanced development of both divisions. “We will restore our competitiveness by focusing even more strongly on our core competencies in the future,” said SMA CEO Jürgen Reinert.
The company said its core strengths include technical expertise in cybersecurity and quality, as well as the ability to “develop holistic solutions according to the highest international and national standards.”
SMA outlined further measures to cut costs. It plans to achieve additional annual savings of more than €100 million beyond its existing program. The move follows its September revision of sales and earnings forecasts for 2025.
SMA said it will cut “around 300” full-time jobs in Germany and 50 internationally. Discussions with co-determination bodies have started. The company employs about 4,000 people worldwide. The reduction, scheduled to begin in January and conclude by the end of 2026, amounts to a cut of just over 9%.
The company identified three main levers for savings in the residential and commercial sectors: “optimizing” research and development spending, including adjustments to the product portfolio; expanding use of its Center of Excellence in India; and withdrawing from unprofitable markets.
It also plans to reduce vertical integration by outsourcing some production, expand capacity in Poland, and “internationalize” operations. In addition, SMA aims to implement a more efficient service strategy with “improved service times, reduced costs, and adjusted prices.”
Further savings will be pursued across the company. Olaf Heyden, who became chief transformation officer in February, said the original savings target is “within reach,” but the current situation makes it “imperative to make further adjustments to our cost base and our business model.”
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